Australian-based Lynas Corporation has rejected a New York Times report, saying Dutch multinational AkzoNobel did not withdraw from its Gebeng project but that it was a Lynas business decision to get a new resin supplier.

A spokesperson from Lynas today denied AkzoNobel had withdrawn its resin supply.

"The notion that AkzoNobel withdrew the resin supply on the grounds of substandard engineering (at the Lynas Advanced Materials Plant, Lamp) is false," the spokesperson said.

Lynas said AkzoNobel is a chemical company and manufacturer of resin and it does not apply resin lining, nor certify the work.

"Lynas made a business decision to change the contract services for integrated resin sourcing, application and certification of the concrete leaching tanks to Trepax Thailand in 2011.

"Trepax has over 20 years' experience in the petrochemicals industry across Asia.

"The new contractor is applying a vinylester resin to meet international industry standard Derakane 411 from the worldwide leader in vinylester resins (Dow Chemicals)," the Lynas spokesperson said.

The resins function as a glue

According to the New York Times report, global chemical giant AkzoNobel has pulled out from the Lamp project near the Pahang capital of Kuantan.

azlanAkzoNobel supplies important resins that function as a glue for dozens of fibreglass liners for concrete-walled tanks that can withstand heat and corrosion.

Rare earths with low levels of radioactive contamination measuring hundreds of tonnes is mixed in the tanks with extremely corrosive acids at more than 90 degrees Celcius.

Corrosion at high temperatures makes the acids ideal in dissolving the ore. However, this method is reportedly unstable.

Lynas received the go-ahead to start operations after the Atomic Energy Licensing Board granted the Gebeng plant a temporary operating licence yesterday.